In addition to giving coronavirus stimulus payments to individual taxpayers and families, the law provides financial aid for businesses and industries staggered by the virus.
Roughly nine in 10 households may receive a recovery rebate under the economic stimulus. Not everyone will receive the complete payment, and some won’t receive a check at all.
Here’s a quick summary of the COVID-19 stimulus package:
- $1,200 check sent to individual taxpayers who meet the income qualifications
- $2,400 check sent to married-filing-joint couples who meet the income qualifications
- $500 additional for each qualifying child in the household
- If you are over the income qualification amount there is an adjustment of $50 deducted for every $1,000
- Who Will Get These Stimulus Checks?
- Here are the specific income qualifications:
- Income is based on people’s tax filings for 2019, but they have not filed for that year, then their filing for 2018 applies
- Maximum Adjust Gross Income for individuals of $75,000 to get a full check
- Maximum Adjust Gross Income for married-filing-joint couples of $150,000 to get a full check
- Check reduced by 5% of the amount of income exceeding $75,000 ($150,000 married-filing-joint)
- Meaning $50 less for every $1,000 over
- If you earn $99,000 or more ($198,000 married-filing-joint), you would NOT receive the individual stimulus check.
- How Will I Get My Stimulus Check?
- Could be within the next 3 weeks for direct-deposit bank accounts, longer if they must mail it to you
Are These Stimulus Checks Taxable?
It appears extremely unlikely. However, for those who have yet to file their 2019 income taxes, the rebates will be based on their 2018 income levels.
That means you could be subject to adjustment once you finally file your 2019 taxes, depending on whether you received too large or too small a rebate based on your most recent income levels.
- Will I get a check if I have IRS or State tax debt?
- If you have tax debt, it appears at this point that you will still receive a check
- Note that 2008 stimulus checks were kept by the government but this is a far greater crisis with both the economy and a deadly virus in the stimulus bill
- What About People on Social Security?
Anyone on Social Security is eligible to receive the coronavirus relief payment as long as their total income does not exceed the limit.
Low-income Americans on Social Security do not need to file a tax return. As long as they received an SSA-1099 form, the federal government will be able to send the payment via the same way they get their Social Security payment. Retirees and people on disability are both eligible for the special payment.
AEGIS TAX DEFENSE
March 26, 2020
See excellent article by Kelan Kline, March 26, 2020, Money Management, and the web site, www.thesavvycouple.com.
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